Confidence in the market rose one point to 47 in April from a downwardly revised March number of 46 on the National Association of Home Builders/Wells Fargo Housing Market Index. The index is calibrated at 100 points, with any score under 50 indicating that more builders view the market as poor than good.
“Builder confidence has been in a holding pattern the past three months,” said NAHB Chairman Kevin Kelly. “Looking ahead, as the spring home buying season gets into full swing and demand increases, builders are expecting sales prospects to improve in the months ahead.”
“Job growth is proceeding at a solid pace, mortgage interest rates remain historically low and home prices are affordable,” said NAHB Chief Economist David Crowe. “While these factors point to a gradual improvement in housing demand, headwinds that are holding up a more robust recovery include ongoing tight credit conditions for home buyers and the fact that builders in many markets are facing a limited availability of lots and labor.”
Builder confidence in the market for new single-family homes was up slightly in April, but most builders were still pessimistic, according to data released yesterday.